The new joint venture agreement includes a combination of the sale of existing production by Magnum Hunter and the participation by Nissho Iwai in the drilling, completion and further development of certain wells located on the above described properties. The total consideration on Nissho Iwai's account will be approximately $11 million.
Commenting on the new joint venture arrangement, Mr. Gary C. Evans, Chairman, President and CEO of Magnum Hunter stated, "Our Company is excited about this new joint venture agreement with Nissho Iwai in the Gulf of Mexico. With 171 OCS lease blocks in our current inventory, we need to continue to seek industry partners who can participate in our projects and can assist us in funding the capital requirements to sufficiently develop them."
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